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Global Managemetnt

Good Essays

CASE |CASE|"Boris, I understand your concern about the risks involved with expansion, but if we're ever going to realise our dreams and the | |STUD|potential of this business, we have to believe that we will succeed! Sure, the industry is fickle - one year you're on top while the| |Y |next year no one wants your designs. We've had some good years and we've had some bad years, but we survived everything the market | | |threw at us and we learned from our mistakes. I honestly think I now understand just what the market wants; with this knowledge we | | |should really be able to take off - if only we can improve quality control and shorten the delivery time. The expansion should take | | |care of these problems and …show more content…

| | | | | |Natasha seems to have faith in the expansion project. Boris, on the other hand, doesn't believe faith is enough and wants Natasha to| | |understand why a proper analysis is important given that the expansion would be a ten-year investment. Boris wants to estimate the | | |future cash flows that would occur if they went ahead with the expansion. Boris eventually would like to determine the Net Present | | |Value of the expansion. The NPV would help him to decide if he should share Natasha's enthusiasm and support the investment, or, if | | |he should advise Natasha that the expansion would be a bad idea as it would decrease their wealth. | | | | | |Natasha has enlisted the help of Bullwinkle, a marketing research consultant, who believes there is a great opportunity for the | | |company to develop a range of mass-produced clothing that could be sold to department

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